Quote:
Originally posted by sgtclub
We do not need to ensure that pharma earns competitive profits, we just need to not prohibit them from doing so. It is necessary for big pharma to be entitled to earn profits competitive with its competitors to (1) incentivize technological advancement, risk taking, and wealth and creation and (2) allow them to compete in the market place for alternative capital and debt sources.
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Quote:
Originally posted by Hank
It's not ensuring the profit, its keeping from government ensuring the lack therof. There are very few drugs that are truly monopolies. Most have competitive or parallel drugs. If the price is too high, business will go elsewhere.
But if a company invests in labs and scientist and developing drugs that will be thrown away in 99% of the cases, it need some decent ROI to justify continuing.
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What Burger said.
Hank, Burger's observation that pharma makes its profits before generics can compete tends to refute your suggestion that there are competitive or parallel drugs. Apparently there are no substitutes other than generics, in most cases.
And we all know that unrestrained monopoly pricing is bad for society.
